This bill amends the Public Adjusters Licensing Act to establish specific requirements for contracts between licensed public adjusters and insured individuals. It stipulates that no public adjuster may receive compensation for services rendered unless the contract includes essential information such as the license numbers of both the adjuster and the firm, a clear definition of the services to be provided, the compensation details, and the insured's right to cancel the agreement. The bill also introduces a notice of right to cancel that must be included in the contract, allowing the insured to cancel within three business days without penalty.

Additionally, the bill modifies existing provisions regarding the handling of funds related to claims. It removes the requirement for escrow accounts to be interest-bearing while maintaining that any funds held in escrow belong to the insured until disbursed according to the contract. The bill aims to enhance transparency and protect consumers by ensuring that public adjusters provide clear and comprehensive information in their contracts, thereby preventing potential misunderstandings or disputes.

Statutes affected:
Introduced: 17:22B-13